Robert J. Shiller, a 2013 Nobel laureate in economics, is Professor of Economics at Yale University and the co-creator of the Case-Shiller Index of US house prices. He is the author of Irrational Exuberance, the third edition of which was published in January 2015, and, most recently, Finance and th…read more

Comments

The failure of the banking system was not a technical failure,rather it was ethical. So there is nothing to reinvent. This is why the politicians, and their financial backers are conveniently blind to the cause of the crash. They have eyes that do not see and ears that do not hear because it is profitable and convenient Read more

I personally like the sobering speech especially in the context of current global economy crisis triggered by American sub-prime lending crisis and European debt crisis. As since the beginning of the crisis, There are murmurs of discontent among people in other industries about the venality among big bankers and the scantiness of self-discipline among finance specialists. I cite the last sentence. "Good luck in reinventing finance. The world needs you to succeed" not only in your personal own pocket but in serving millions of people. Read more

"it is vital not only that you have the right tools, but also that you never lose sight of the purposes and overriding social goals of finance." This is great. However, in order for that to happen the indivisual consumer /investor sovernieghty must not be the prime philosophy, and profit- making must not be the prime drive. In the policy domain, the possibilty of speculatin in financial markets must be reduced to the minimum possible, and financial innovation must be limited to real sector's needs. in the academic domain, such values and ideas must be reflected in textbook-writing and curriculum design. Read more

I would have a less inspiring and sobering speech for those graduates the article mentions in the first paragraph.Most of our problems today stem from the fact that we lost the proper cause and effect relationship.Services, professions that were supposed to serve, and assist human, social functions have become the "cream", the object of desire, basically these institutions are served today by the rest of society.We do not need to reinvent financial institutions, we need to reinvent a more improved human society, more suited to the conditions of the 21st century, starting with basic human attitude, the relationship in between people, and if we reinvent the foundations all other institutions supposed to serve normal human society would adjust automatically.Today our society is based on false, illusory values of excessive over consumption where we are urged, tempted into keep on buying products we do not need, without marketing we would not even dream of, for money we do not have. We have become slaves to this social pressure and the institutions serving it and benefiting from it.Since it is a totally unnatural system now it has become self destructing, threatening even our long term, or not so long term survival in the closed, finite system we exist in.Thus first of all we have to reinvent normal, natural values, and purposes within human society, build a new structure based on mutual responsibility and mutual consideration, adapting to the global, integral human network of today.Everything else is secondary. Read more

In order to ensure an orderly evolution of finance from a niche segment into the mainstream international financial markets, it is vital to further enhance the industry's capabilities for cross-border activities, which in turn will encourage innovative product development, robust and standardized regulatory frameworks and the long term stability of the industry.http://www.dialabank.com/article.cfm/articleid/1741Read more

Robert Skidelsky
on why the right economic policies cannot work without the right public expectations.

Project Syndicate provides readers with original, engaging, and thought-provoking commentaries by global leaders and thinkers. By offering incisive perspectives from those who are shaping the world's economics, politics, science, and culture, Project Syndicate has created an unrivaled global venue for informed public debate.